Over the last 7 days, the Indian market has dropped 1.0%, but it has shown a robust 39% rise over the past year, with earnings forecasted to grow by 17% annually. In this context, growth companies with high insider ownership can be particularly appealing as they often signal strong confidence from those who know the business best.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Hindware Home Innovation Limited operates in the manufacturing, selling, and trading of building products, consumer appliances, and retail business in India with a market cap of ?26.33 billion.
Operations: The company's revenue segments include ?23.56 billion from building products, ?4.39 billion from consumer appliances, and ?121.54 million from the retail business.
Insider Ownership: 15%
Earnings Growth Forecast: 58.6% p.a.
Hindware Home Innovation shows promising growth prospects with earnings forecasted to grow significantly at 58.6% per year, outpacing the Indian market's 17%. However, its return on equity is expected to be low at 18.7%. The company faces regulatory challenges, including recent tax demands and penalties totaling over ?4.76 million. Despite these hurdles, Hindware’s revenue is projected to rise by 10.9% annually, slightly above the market average of 10.1%.
Overview: Tega Industries Limited designs, manufactures, and installs process equipment and accessories for the mineral processing, mining, and material handling industries with a market cap of ?114.24 billion.
Operations: Tega Industries Limited generates revenue primarily from two segments: ?1.98 billion from Equipments and ?13.71 billion from Consumables.
Insider Ownership: 19%
Earnings Growth Forecast: 24.7% p.a.
Tega Industries exhibits strong growth potential with earnings forecasted to grow significantly at 24.75% per year, surpassing the Indian market's 17%. Despite revenue growth being slower than 20% annually, it is still expected to outpace the market at 17%. The company's Return on Equity is projected to be high at 21.6% in three years. Recent financial results show robust performance with Q1 sales and net income increasing notably compared to the previous year.
Overview: VA Tech Wabag Limited, with a market cap of ?85.10 billion, designs, supplies, installs, constructs, operates, and maintains drinking water, waste and industrial water treatment, and desalination plants in India and internationally.
Operations: Revenue from the construction and maintenance of water treatment plants amounts to ?29.30 billion.
Insider Ownership: 28.3%
Earnings Growth Forecast: 27.3% p.a.
VA Tech Wabag demonstrates solid growth potential with earnings forecasted to grow at 27.3% annually, outpacing the Indian market's 17%. Recent financial results show a rise in Q1 sales to ?6.27 billion and net income to ?550 million. The company secured significant contracts, including a $317 million order from the Saudi Water Authority and a repeat order worth ?4.15 billion from Chennai Metropolitan Water Supply and Sewage Board, enhancing its market position.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.
Companies discussed in this article include NSEI:HINDWAREAP NSEI:TEGA and NSEI:WABAG.
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